Israel's ZIM Reports Second Quarter 2026 Results with Net Profit of $64 Million

en.Wedoany.com Reported - ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) announced on August 19, 2026, its consolidated results for the second quarter and first half of the year ended June 30, 2026. Net profit for the second quarter was $64 million, compared to $24 million in the same period last year; diluted earnings per share were $0.53, compared to $0.19 in the same period last year; adjusted net profit was $77 million, compared to $24 million in the same period last year; adjusted EBITDA was $491 million, up 4% from $472 million in the same period last year. Second quarter revenue was $1.78 billion, up 9% year-over-year, compared to $1.64 billion in the same period last year; cargo volume was 922,000 TEUs, up 3% year-over-year, compared to 895,000 TEUs in the same period last year; average freight rate per TEU was $1,590, up 8% year-over-year, compared to $1,479 in the same period last year; the quarter generated free cash flow of $386 million. ZIM stated that the year-over-year improvement in second quarter profitability was driven by its strategic positioning in the trans-Pacific trade, a modern, fuel-efficient, and cost-effective fleet, flexible commercial strategies, and the utilization of favorable market conditions.

In the first half of the year, ZIM's total revenue was $3.18 billion, compared to $3.64 billion in the same period last year; cargo volume was 1.788 million TEUs, compared to 1.839 million TEUs in the same period last year; average freight rate per TEU was $1,455, compared to $1,632 in the same period last year. The net loss for the first half was $22 million, compared to a net profit of $320 million in the same period last year, primarily due to the decline in total revenue, partially offset by income tax effects; adjusted net profit was $4 million, compared to $318 million in the same period last year. Adjusted EBITDA was $804 million, compared to $1.25 billion in the same period last year; adjusted EBIT was $164 million, compared to $612 million in the same period last year; adjusted EBITDA margin and adjusted EBIT margin were 25% and 5%, respectively, compared to 34% and 17% in the same period last year. Net cash generated from operating activities in the first half was $657 million, compared to $1.30 billion in the same period last year.

ZIM's President and Chief Executive Officer, Chen Lichtenstein, stated that since assuming the role in July, the focus has been on maintaining discipline and efficiency in deploying the company's resources while fully seizing current market opportunities, remaining flexible to respond quickly to market changes, enhancing competitiveness, and creating sustainable value. Chief Financial Officer Sami Jubran added that the second quarter results were solid, and performance is expected to strengthen significantly in the remainder of the year, with this improved outlook enabling the Board to consider declaring a dividend to shareholders based on third quarter results.

Operating profit (EBIT) for the second quarter was $144 million, compared to $149 million in the same period last year; adjusted EBIT was $169 million, compared to $149 million in the same period last year; adjusted EBITDA margin and adjusted EBIT margin were 28% and 10%, respectively, compared to 29% and 9% in the same period last year. Net cash generated from operating activities in the second quarter was $395 million, compared to $441 million in the same period last year. Operating profit (EBIT) for the first half was $126 million, compared to $613 million in the same period last year, with the decline primarily attributable to the decrease in total revenue. Total capital expenditures for the second quarter and first half were $12 million and $43 million, respectively, compared to $24 million and $102 million in the same period last year. Other cash flow items in the first half included dividend payments of $106 million and debt repayments of $781 million, the latter primarily related to lease liabilities for chartered vessels and equipment.

As of June 30, 2026, ZIM's total cash position was $2.53 billion, compared to $2.54 billion as of March 31 and $2.80 billion as of December 31, 2025. Net debt (primarily consisting of lease liabilities less total cash position) was $2.77 billion, compared to $2.93 billion as of March 31 and $2.92 billion at the end of 2025. Net cash position (total cash position less financial debt, excluding lease liabilities) was $2.46 billion, flat compared to March 31 and compared to $2.72 billion at the end of 2025. Net leverage was 1.6x, compared to 1.7x as of March 31 and 1.3x at the end of 2025.

Regarding the fleet, ZIM currently operates 115 container ships with a total capacity of 707,000 TEUs, as well as 13 car carriers; as of the earnings release date of August 20, 2025, it operated 123 container ships with a total capacity of 767,000 TEUs and 14 car carriers. The company has 9 container ships (with a total capacity of approximately 35,000 TEUs) scheduled for charter expiry in the remainder of 2026, and 13 container ships (approximately 28,000 TEUs) scheduled for charter expiry in 2027. ZIM expects capacity to remain stable in 2026 and can proactively manage operational capacity through the aforementioned charter expiry arrangements.

Regarding newbuilds, ZIM has entered into charter agreements for a total of 40 vessels with a capacity of approximately 286,000 TEUs, the vast majority of which are newbuilds, including: four 8,000 TEU newbuilds equipped with scrubbers, with charter periods of 5 or 7.5 years, expected for delivery between the second half of 2026 and the first half of 2027; ten 11,500 TEU dual-fuel LNG newbuilds, with charter periods of 12 years, expected for delivery between 2027 and 2028, with ZIM holding options to extend the charter period or purchase these vessels; two 12,000 TEU newbuilds equipped with scrubbers, scheduled for delivery in 2027, with charter periods of up to five years, including optional extensions; four 9,000 TEU second-hand vessels (built 2015-2016), expected for delivery in 2027-2028, with charter periods of five years, including optional extensions; and 20 newbuilds, some equipped with scrubbers, with capacities ranging from 3,000 to 5,000 TEUs, scheduled for delivery between 2027 and 2028, with charter periods of 5 or 7.5 years, some including optional extensions.

Regarding the full-year 2026 guidance, ZIM expects adjusted EBITDA of $2.0 billion to $2.4 billion and adjusted EBIT of $700 million to $1.1 billion. Based on the current guidance, the company expects to distribute dividends to shareholders with respect to 2026 results in accordance with its existing dividend policy. All future dividends are at the discretion of the Board of Directors and are subject to Israeli law and applicable restrictions under the merger agreement with Hapag-Lloyd. The company stated that a reconciliation of the non-IFRS financial measures in the full-year 2026 guidance to the corresponding IFRS measures cannot be provided on a forward-looking basis due to the uncertainty and potential volatility of future costs and expenses related to adjustment items, the impact of which may be significant, difficult to predict, and subject to frequent changes.

Regarding the transaction with Hapag-Lloyd, on February 16, 2026, ZIM announced a merger agreement with Hapag-Lloyd, under which the latter will acquire ZIM for $35.00 per share in cash. The transaction was unanimously approved by ZIM's Board of Directors and approved by shareholders at a special meeting on April 30, 2026, and remains subject to customary closing conditions, including receipt of regulatory approvals. Subject to the requirements of the State of Israel with respect to the special state share ("golden share"), the transaction is targeted to close in the fourth quarter of 2026. Until closing, the two companies will continue to operate independently.

In light of the pending transaction, ZIM will not hold a conference call to discuss its second quarter 2026 results. Founded in Israel in 1945, ZIM is listed on the New York Stock Exchange and operates in over 90 countries, providing maritime transportation and logistics services to more than 30,000 customers across over 300 ports worldwide. Company information is available at www.ZIM.com.